Committee approves issue of secured NCDs on private placement up to Rs. 2,000 crore at 8.62% p.a
The Committee of Directors approved issuing Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) on a private placement basis.
- Base Issue Size
- Rs. 500,00,00,000
- Total Aggregate with Green Shoe
- Rs. 2000,00,00,000
- Coupon Rate
- 8.62% p.a.
- Tenure
- 3 years and 45 Days
- Maturity Date
- 22nd November 2029
What was decided
The Committee of Directors (Administration, Authorisation & Finance) of the company, at its meeting held on 28th September 2026, approved the issuance of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs) on a private placement basis through the EBP (electronic bidding platform) process, via a Key Information Document. This follows the Board's earlier enabling approval for raising funds through NCDs during 1st April 2026 to 31st March 2027.
Size and pricing
- Base issue size: Rs. 500,00,00,000 (Rupees Five Hundred Crores)
- Green shoe option to retain oversubscription: up to Rs. 1500,00,00,000
- Aggregate: Rs. 2000,00,00,000
- Face value per debenture: Rs. 1,00,000
- Coupon: 8.62% p.a., payable annually and on the redemption date
Tenor
- Tenure: 3 years and 45 Days
- Date of allotment: 8th October 2026
- Date of maturity: 22nd November 2029
Security
The debentures are secured through a first ranking pari-passu charge by way of hypothecation over the Hypothecated Assets (excluding Excluded Assets, both present and future) of the company. The company must at all times keep the Security Cover Ratio at or above the Minimum Security Cover of 1 time.
In case of default in payment of interest and/or principal on due dates, additional interest of 2% p.a. over the applicable coupon rate is payable from the date of default until it is cured or the debentures are redeemed.
Listing
The debentures are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE and NSE within a maximum of 3 Working Days from the closing of the issue, with NSE as the designated stock exchange.
How to read this
This is a debt-raising step by a lending business, where borrowing is part of routine funding for on-lending. A private placement means the debentures are offered to selected institutional investors rather than the public, so equity shareholders are not diluted. The coupon indicates the cost at which the company is raising this tranche of funds. The meeting commenced at 5:40 p.m. and concluded at 6:00 p.m.
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More numbers
- Base issue sizeRs. 500,00,00,000
- Green shoe optionRs. 1500,00,00,000/-
- Aggregate issue sizeRs. 2000,00,00,000/-
- Face value per debentureRs. 1,00,000/-
- Coupon rate8.62% p.a.
- Tenure3 years and 45 Days
- Minimum Security Cover1 time
- Additional interest on default2% (Two percent) p.a.
- Listing timeline after issue closure3 (Three) Working Days
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